Reduction in the need for office space should not be the major worry. The bigger concern is whether companies will start hiring out of state instead of locally since everyone is working remotely anyway.
I doubt there will be a drastic decline in real estate. 10-20% is my guess unless we see massive tech layoffs. Most of the people laid off so far can’t afford to buy houses in the bay area anyway (the ones that can, i.e. small business owners, are getting bailed out). Don’t forget about the infinite QE. This will offset the negatives noted by others above.
I love boring lifestyle. I stay at home 24 hrs a day, 365 days a year, no issue, no need to deal face2face with annoying humans. I would rather text with the computer.
Wrong. Going forward, the new generation of WFH lovers would replace old fashioned like to go to the office. Remember, none of you are 20s.
Sure? Did you try and don’t like it? Ok, you are out-of-a-job, not progressive.
I feel socializing is a waste of time. Not interested in socializing in office. Prefer clubbing and rubbing shoulders with bigwigs in conferences.
I am already feeling half sad sitting at home all day. Well I am busy with my work but still locked inside a home for all day is no good. No water cooler talk, no bath room break gossips. Oh man, there is a word for it.
I talked to my buddy who is a foreclosure buyer flipper. He doesn’t believe my 20-50% doomsday drop in prices. In fact he is buying. So there is that. Buyer beware. But there is still a lot of cash floating around. He says there are still multiple offers below $1m in Santa Clara county.
My plan is to call all my rich successful friends.
I will report back. At least it will help raise my spirits. Pretty depressing being a landlord.
I doubt there will be more than 10% reduction in prices anywhere in the south bay.
A lot of sellers in the fortress themselves are strong hands - they’ll just wait it out and relist later.
My wife’s been talking with a lot of her co-workers and many seem to claim that they’ve been in cash since 2019. With that kind of attitude, I think there will be enough buyers to bring prices back up quickly.
As for the non-agency mortgage problem, I’d be surprised if the government won’t step in soon enough and provide support. This is a critical part of the mortgage market and I’m hoping Mnuchin knows this.
I do agree with @harriet that all the remote working will spur companies to go completely remote or move to cheaper locations. My employer is shutting down their LN office to start with and thinking about more remote employees.
One good thing to come out of corona virus is that the movement to make California cities denser is going to face stronger resistance. Lesser the housing density, more livable the town.
The idea that high density housings are not pandemic resistant is gaining ground. I was just reporting a news that came out of politico. Not the most authentic source of information but here it is FWIW.
Fears are usually irrational. That is why they are fear in the first place. Whether it is fear of corona-virus or fear of high density housing. If people are unable to evaluate the risk, They are afraid and very afraid (or not afraid at all). America is not a land starved place like Singapore or Hongkong. And I am not seeing any population pressure building up on California. So, it will be interesting to see how it pans out.
Sex doesn’t mean more babies. The 1920s had a baby boom. The 1930s had a baby bust. If people are worried about their future they will put off having kids.
